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Senate okays release of $50M for CIP
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Posted on Jan 17 2001
The Senate passed yesterday a measure appropriating $50 million for various Capital Improvement Projects following the release of the proceeds from the $60 million bond flotation.
Of the $50 million fund, $25 million will come from the proceeds of the bond while the remaining $25 million will come from the Covenant Section 702 Funding as specified under House Bill 12-130.
At least ten projects for the First Senatorial District of Rota amounting to $18, 455,000 will be carried out, nine projects from the Second Senatorial District of Tinian amounting to $11, 945,000 and the projects to be identified in order of priority in the Third Senatorial District of Saipan will get a total of $19, 750, 000.
Gov. Pedro P. Tenorio has hailed the successful bond flotation which he said will help lift the sagging economy. The bond proceeds have been set aside to match equal amount of federal construction grants under the CIP/Covenant 702 funding.
Half of the $60 million have been set aside to repay the $30 million owed by the government from the Bank of Guam under an interim financing scheme approved by lawmakers to immediately avail of the CIP funding.
At the same time, the Senate passed HB 12-059 appropriating $256,636 for the construction of Dandan, Kagman and Koblerville elementary school playgrounds, San Vicente Elementary school campus drainage and the renovation of the Special Education Building at San Antonio Elementary School.
The money for these projects came from fund balances in Public Law Nos. 9-1 and 10-38.
Higher interest rates that prevail in the U.S. mainland and the poor economic condition in the CNMI delayed the $60 million bond flotation which should have been carried out middle of year 2000.
The bond flotation was successfully carried out middle of December which showed the business confidence to pour in money to the Northern Marianas remains strong, according to the Commonwealth Development Authority. (Lindablue F. Romero)
